CORPORATE PRESENTATION - Q1 2020 - Pioneering the Discovery of a New Gold Belt in Ghana, West Africa - Xtra-Gold Resources Corp.
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CORPORATE PRESENTATION
Q1 2020
Pioneering the Discovery of a New Gold Belt in Ghana, West Africa
CAUTIONARY STATEMENT: FORWARD-LOOKING INFORMATION / TECHNICAL DISCOSURE
Statements contained in this Presentation that are not based on historical fact are “forward-looking statements”. Recipients are not to construe the contents of this Presentation as legal or tax advice. Each Recipient should
Forward-looking statements may be identified by the use of forward-looking terminology such as “may”, consult his own counsel, accountant and other advisors as to legal, tax and related matters relating to any
“expect”, “believe”, “estimate”, “anticipate”, “intend”, “plan”, “continue” or similar terms variations of those relationship with Xtra-Gold.
terms or the negative of those terms. These forward-looking statements are based on information currently
available to us. There are a number of risks, uncertainties and other factors that could cause our actual This Presentation contains summaries or significant documents. Although such summaries are believed to be
results, performance, prospects or opportunities to differ materially from those expressed in or implied by fair and accurate, they do not purport to be a complete description of every term and condition and
these forward-looking statements. Each person, company or company representatives who receives a reference is hereby made to the actual documents for complete information relating to the rights and
copy of this Presentation (“Recipient”) should not attribute undue certainty to any forward-looking statement. obligations of the parties thereto. The summaries are qualified in their entirety by this reference.
Except as otherwise may be required by federal securities laws, we undertake no obligation to publicly
update or revise any forward-looking statement, whether as a result of new information, future events, In making a decision to do business with Xtra-Gold, any Recipient must rely on their own examination and
changes circumstances, or any other reason, after the date of this Presentation. due diligence investigation of Xtra-Gold, including the merits and risks involved. We cannot guarantee you
that the abbreviated nature of this Presentation will not omit to state a material fact which someone
may believe to be an important factor about Xtra-Gold. As a result, any Recipient is required to undertake his
own due diligence of Xtra-Gold, our current and proposed business and operations, our Management and
This Presentation has not been reviewed, approved or disapproved, nor has the accuracy or adequacy of the
information set forth herein been passed upon by the Securities and Exchange Commission or any state our financial condition to verify the accuracy and completeness of the information we are providing
in this Presentation.
securities administrator or any United States, Canadian securities regulatory authorities or any other country,
federal or state regulatory body. Any representation to the contrary is a criminal offense. The lode gold exploration technical information in this presentation was prepared by Yves P. Clement, P.Geo.,
Vice President, Exploration for Xtra-Gold Resources Corp.; a non-independent Qualified Person as defined by
National Instrument 43-101. The technical information contained in this presentation has been compiled from
This Presentation is being made on a confidential basis for use solely in connection with a potential investment. NI 43-101 compliant technical reports and news releases with specific underlying Qualified Persons as set out
The disclosure of any of the data contained herein or supplied in connection herewith or the use thereof for in the releases and reports, and publically available industry information. Please refer to SEDAR for complete
any other purpose, except with our written consent, is strictly prohibited. This Presentation may not information (www.sedar.com). This presentation reports on the technical information of the company’s
be reproduced, in whole or in part and it is accepted by a Recipient with the understanding that it will exploration projects up to September 30, 2019, and provides a guide to the company’s potential future
be returned at our request. activities and use of funds. There can be no assurances that the company objectives will be achieved.
Industry information has been compiled from publically available sources and may not be complete, up to
date or reliable. Readers are cautioned that any information regarding adjacent or geologically similar
Any Recipient of this Presentation may, if he or she so desires, make inquiries of appropriate members mineral properties are not indicative of mineral deposits on the company’s properties.
of our Management with respect to our business or any other matters set forth herein and may obtain
any additional information which such person deems to be necessary in order to verify the accuracy of Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. This
the information contained in this Presentation (to the extent that we possess such information or can mineral resource estimate includes inferred mineral resources that are normally considered too speculative
acquire it without unreasonable effort or expense). In connection with such inquiry, any documents geologically to have economic considerations applied to them that would enable them to be categorized as
which any Recipient wishes to review will be made available for inspection and/or copying. Prior to mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the
review of the documents or information, each Recipient may be required to sign a confidentiality measured and indicated resource categories through further drilling, or into mineral reserves, once economic
agreement restricting the subsequent use of the information. Any such inquiries or requests for additional considerations are applied. There can be no assurance that any of the assumptions in the resource estimates will
information or documents should be made in writing to our President and CEO, James Longshore. be supported by a Pre-feasibility or Feasibility Study or that any forward looking event will come to pass.
This presentation makes use of the terms “Indicated” and “Inferred” Resources. United States investors are
No person has been authorized to give any information or to make any representations other than those advised that while the terms “Measured”, “Indicated”, and “Inferred” Resources are recognized and required by
contained in this Presentation in connection with a potential investment in our Company and, if given or Canadian regulations, the United States Securities and Exchange Commission does not recognize them.
made, such information or representations must not be relied upon as having been authorized by us. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic
This Presentation does not constitute an offer to sell or the solicitation of any offer to buy any security and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be
of Xtra-Gold Resources Corp. (“Xtra-Gold”), nor does it constitute an offer to sell or a solicitation of any upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the
offer to buy such securities by anyone in any jurisdiction. Any offer or sale of securities of Xtra-Gold basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any
will only be made by a separate offering document and definitive agreement which this Presentation
part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States
does not form a part thereof.
investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is
economically or legally mineable.
2
PRESENTATION SUMMARY
Ø Corporate Overview
Ø Ghana Overview
Ø Exploration Overview
Ø Strategy
3
CORPORATE OVERVIEW
Highlights
Ø Xtra-Gold Resources Corp. (“Xtra-Gold” or the “Company”) is a gold exploration
company focused on defining a potentially significant mineral resource on its Kibi Gold
Discovery in Ghana, West Africa
Ø The Company’s main concessions are comprised of 5 mining leases (226.24 sq km or
55,905 acres) located in the prospective Kibi Greenstone Belt (“Kibi Gold Belt”) in the
Eastern Region of Ghana
Ø US$5 million plus in cash and liquid assets; US$5 million plus in gold bullion sales
in Ghana in 2018; No Debt
Ø Shares Outstanding 45,951,117 (as of S e p t . 3 0 , 2019)
Warrants 1,250,000 (exercise price: CND$0.50)
Stock Options 2,615,500
Fully Diluted 49,816,617
Ø Completed initial public offering on the Toronto Stock Exchange on November 23rd 2010,
raising CND$10 million at a price of CND$1.35 per share
Ø Shares trade on the Toronto Stock Exchange under the symbol “XTG” and on the
OTCQB under the symbol “XTGRF”
4
CORPORATE OVERVIEW
Corporate Structure
5
CORPORATE OVERVIEW
Management
James Longshore Ø 25 years experience with resource-based companies
President, CEO Ø Co-Founder of Xtra-Gold
Ø Managing Director of Ghana operations since 2009
Yves P. Clement Ø 30 years international experience in generation, evaluation, and
development of exploration properties
Vice-President, Exploration
Ø Former Senior Project Geologist with Lake Shore Gold Corp. and
Aurora Platinum Corp.
Ø Vice-President of Exploration since 2006
Victor Nkansa Ø 30 years business experience including 15 years experience in the
Chief Financial Officer mining industry
Ø Chartered accountant and Master of Business Administration
Ø Director of Ghana Subsidiary since 2005
John C. Ross Ø 33 years business experience, including 23 years experience in the
Finance Manager mining industry
Ø Former CFO of Iamgold Corp. Quadra FNX Mining Ltd. and
Colossus Mineral Inc.
Ø Chartered accountant and Finance Manager since 2010 6
CORPORATE OVERVIEW
Assets
1. Maiden Mineral Resource Estimate (Base Case): 278,000 ounces of gold in Indicated category (3.38
million tonnes grading 2.56 g/t gold) and additional 147,000 ounces of gold in Inferred category
(2.35 million tonnes grading 1.94 g/t gold)
2. 5 Mining Leases totaling 55,905 acres in a significant gold district granted by the government
3. US$5 million plus in cash and liquid assets
4. US$5 million plus sold in gold bullion from alluvial (placer) gold mining operations in 2018
5. US$2 million plus spent on equipment at the companies mine camp
6. US$1 million estimated in replacement value of Xtra-Gold’s mine camp
7. US$900,000 spent on VTEM Survey and IP Surveys to assist in identifying new lode gold targets
8. US$2 mil. plus spent on reconnaissance exploration work (soil sampling, trenching, etc.) This work
has produced the new Cobra Creek Gold Project; in addition to a strong pipeline of priority
drill targets to potentially expand our Maiden Resource; and
9. Over 100 long term employees in Ghana dedicated to Xtra-Gold success.
7
CORPORATE OVERVIEW
Assets
CEO organizing gold sales 8
GHANA OVERVIEW
About Ghana
Ø Independent West African country, located on the Gulf of Guinea
just north of the equator (formerly known as “The Gold Coast”)
Ø Population +25 million
Ø GDP $65 billion (2018)
Ø Democratic government
• legal system based on British Common Law
• more than 50 years of independence
Ø Rated by independent agencies as one of the most politically
stable country in Africa
Ø English is the primary language
Ø Pro-business and foreign investment
9
GHANA OVERVIEW
Location & Infrastructure
Ø Xtra-Gold’s mining camp is the closest to the capital city
of Accra, as depicted on the map
Ø Easy direct air services to Accra from the following
international cities: New York, Amsterdam, Brussels,
Dubai, London, and Paris
Ø Distance is 120 km from Accra, with newly constructed
highway to the concessions
Ø Hydro electricity from main grid runs through the concessions
Ø Easy access, distance & power could result in low infrastructure
costs for mine construction and operations
10GHANA OVERVIEW
Gold in Ghana
Ø Four main gold belts of Southern Ghana depicted on map,
with all discovered gold deposits highlighted
Ø Gold discovered: +150 million ounces
Ø Annual production: 4.5 million plus ounces;
highest producer in Africa
Ø Three of the top four gold producers in the world have
mining operations in Ghana, including: Newmont Goldcorp,
AngloGold Ashanti and Kinross Gold
Ø Ghana hosts multiple 10 million ounce gold
deposits such as Obuasi, Tarkwa and Akyem
11EXPLORATION OVERVIEW
Discovering Ghana’s Next Gold Camp
Strategic Land Package In Emerging Gold Belt
Ø Dominant, wholly-owned, land position in highly
prospective and under explored Kibi-Winneba
greenstone belt (“Kibi Gold Belt”)
Ø Kibi Gold Belt geologically analogous to other prolific
Birimian greenstone belts of southern Ghana, including
neighboring Ashanti Gold Belt; one of most highly gold
endowed belts in the world with estimated gold
resources crossing 130 Moz
Ø Competitive advantage “unsurpassed understanding of
gold mineralization controls” gained from >10 years of
continuous exploration efforts in Kibi Gold Belt
Ø Xtra-Gold best positioned to make next significant
gold discovery in Ghana
12EXPLORATION OVERVIEW
Kibi Gold Belt – Untapped Potential
Pioneering Discovery Of New Gold Belt
Ø Prior to Xtra-Gold, very limited systematic/modern
exploration activity targeting lode gold deposits
conducted on Kibi Greenstone Belt (“Kibi Gold Belt); with
virtually all past mining/exploration efforts focussing on
extensive alluvial (placer) gold deposits throughout the
Kibi mining district
Ø Kibi Gold Project (Zone 2 – Zone 3) maiden mineral
resource estimate produced by Xtra-Gold (October 2012)
represents first ever mineral resource generated on a
lode gold project within the Kibi Gold Belt
Ø Cobra Creek Gold Project discovery consisting
of ~550 m wide high-grade gold bearing structural
corridor traced over ~850 m strike length augurs well for
the potential resource expansion of the Kibi Gold Project
Ø Strong pipeline of drill-ready gold targets generated
from extensive grassroots exploration work by our
exploration team over last 5 years
13EXPLORATION OVERVIEW
Kibi Gold Project
Maiden Mineral Resource Estimate
Zone 2 – Zone 3
Base Case Resource Estimate* (effective October 26, 2012)
Ø Maiden mineral resource represents first ever mineral resource
generated on a lode gold project within the Kibi Gold Belt
Ø Base case resource estimate* encompasses Big Bend, East
Dyke, Mushroom, and South Ridge deposits in Zone 2 and the
Double 19 deposit in Zone 3
Ø In aggregate, these 5 gold deposits estimated to contain an
Indicated mineral resource of 3.38 million tonnes grading
2.56 g/t gold for 278,000 oz of gold and an additional
Inferred mineral resource of 2.35 million tonnes grading
1.94g/t gold for 147,000 oz of gold (@ base case 0.5 g/t cut-
off)
Ø All mineralized bodies come to surface and remain open in
several directions; with potential for expansion with
additional follow up drilling
Ø Preliminary metallurgy test work indicates high amenability to
gravity upgrading (>50% for oxide & >60% for sulphide), and
also indicates high amenability to cyanidation leaching (> 95%
recoverable on gravity tails)
Ø Known gold mineralization system extends well beyond current
resource estimate
* See cautionary notes on mineral resource estimates on page 2 of presentation
14EXPLORATION OVERVIEW
Kibi Gold Project
Mineral Resource Expansion Potential
(Zone 2 – Zone 3)
Ø Maiden resource estimate provides significant starting position,
with all 5 mineralized bodies remaining open in several
directions; with good potential to expand respective resources
by follow up drilling
Ø Considerable insight gained on mineralization controls;
improving future mineralization targeting / modeling
Ø Additional 5 limitedly defined gold shoots identified within
Zone 2 resource estimate footprint area; all open for expansion
Ø Further 7 shallow, early stage gold discoveries present within
Zone 3 gold-in-soil anomaly; extending known gold
mineralization system to over 2.5 km in trend length
Ø All gold targets consist of typical Zone 2 – Zone 3 Granitoid-
hosted gold mineralization; indicating widespread nature of
mineralization system / event
Ø Boomerang Zone at SW extremity of mineralization trend
exhibits favourable litho-structural setting; with irregularities in
host granitoid body geometry being the primary structural
control for Zone 2 – Zone 3 type gold mineralization
Note: Readers are cautioned that the JK Zone target lies in the Forest Reserve; outside
the Apapam concession; and the Company as presently no rights to explore or mine
this mineralization zone. Although Forest Reserve exploration permits are routinely
granted by the Ghana Governement ; there is no assurance that the Company will ever
be granted a permit to explore or mine this mineralization zone.
15EXPLORATION OVERVIEW
Cobra Creek Gold Corridor
Highly Encouraging First Pass Drill Results
Ø 2,639 m Phase I diamond core drill program (43 boreholes)
on Cobra Creek Gold Corridor prospect; an approximately
550 m wide, NE-trending, quartz-feldspar porphyry (“QFP”)
hosted, multi-structure braided shear zone
system traced to date over approximately 850 m strike length.
Ø 26 of 43 boreholes yielded exploration significant auriferous
drill intercepts; with high grade quartz – iron carbonate –
tourmaline veining in boreholes #CCDD16015, #CCDD16020,
and #CCDD16024 exhibiting multiple visible gold grains .
Ø Drill result highlights include: 4.5 m grading 10.9 grams per
tonne (“g/t”) gold, including 16.28 g/t gold over 2.9 m in
#CCDD16020 and 5.5 m grading 6.57 g/t gold, including 11.7
g/t gold over 2 m in #CCDD16013 (High Grade Shoot fold
structure); and 5.2 m grading 9.51 g/t gold, including 37.95
g/t gold over 1.1 m in #CCDD16015 and 1.5 m grading 48.1 g/t
gold in #CCDD16022 (High Grade Shoot – NW Branch).
Ø Surface mapping / drilling observations to date indicate that
Cobra Creek high grade gold mineralization hosted by flat-
lying, variably folded, extensional veining arrays developed
along series of NE-trending, steeply dipping shear zones
exhibiting extensive iron carbonate alteration envelopes.
Ø Considerable new insight gained on structural controls of the
high grade gold mineralization to help guide future exploration
efforts on Cobra Creek prospect.
Ø Follow up drilling planned on highly encouraging first pass drill
results with program design incorporating vertical holes
targeting the flat-lying , high grade, extensional veining
systems; as well as further testing of steep controlling shears
across the auriferous structural corridor.
16EXPLORATION OVERVIEW
Kibi Gold Project
Expanding Gold Mineralization Footprint
Ø Maiden Mineral Resource reflects work on Zone 2 &
Zone 3 gold-in-soil anomalies, first 2 targets focused on
since commencement of field work on project ; with
excellent potential to discover new deposits across the
Kibi Gold Project, as well as within Zone 2 and Zone 3
Ø Considerable insight gained on mineralization controls
over last 5 years; permitting prioritization of gold-in-
soil anomalies / VTEM targets; and improved drill
targeting
Ø 9 priority gold-in-soil trends yielded by property-wide
soil geochemistry; with anomalies typically spatially
associated with inferred structural corridors and/or
granitoid bodies
Ø 2 new auriferous shear systems identified to date from
gold-in-soil anomaly follow up work; Cobra Creek Gold
Corridor (Zone 5) and Hillcrest Shear (Zone 6)
Ø Cobra Creek Gold Corridor: ~550 m wide, NE-trending,
high-grade gold bearing structural corridor traced over
~850 m strike length; with QFP-hosted braided shear
system encompassing 9 known auriferous structures
characterized by widespread, flat-lying extensional
veining arrays
Ø Hillcrest Gold Target : ~1,200 m x 100 m – 200 m
tight/linear gold-in-soil anomaly spatially associated
with inferred regional fault bounding Belt-type
granitoid body. Single scout trench returned 12.0 m @
2.23 g/t gold from granitoid hosted shear zone
17EXPLORATION OVERVIEW
Current Drilling Zone 2 - Kibi Gold Project
18EXPLORATION OVERVIEW
Cobra Creek Gold Corridor
Outcrop stripping on Main Shear; High Grade Shoot at top of ridge (Facing North) Diamond Core Drilling on High Grade Shoot – Borehole #CCDD16013 (Facing SW)
Saw-cut channel sampling / sample string surveying (L17675N Shear) Mechanized trenching on High Grade Gold Shoot – Main Shear (Facing SW) 19STRATEGY TO MAXIMIZE
SHAREHOLDER VALUE
Increase the Maiden Mineral Resource of the Kibi Gold Discovery
Immediate goal is to define 1 million ounces of gold
Continue contract alluvial (placer) gold mining to create cash flow
to limit shareholder dilution
Continue grassroots exploration work to potentially identify new
gold deposits
Ultimate goal is to define a multi-million ounce deposit, which
will make Kibi Gold Discovery a world class deposit
.
20CONTACT US
Suite #2150
Village Road Shopping Plaza
P.O Box AP 59217
Nassau, Bahamas
TEL: (416) 628-2881 James Longshore, President/CEO
WEB SITE: www.xtragold.com
AUDITOR: RBSM Accountants & Advisors LLP
805 Third Avenue, Suite 1430
New York, New York 10022
LEGAL COUNSEL: Sui & Company
The Exchange Tower, Box 427
130 King Street West, Suite 1800
Toronto ON M5X 1E3
TRANSFER Computershare Services Inc.
AGENTS: 100 University Avenue, 11th Floor
Toronto ON M5H 2Y1
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